Sign inSubscribe
Headlines

Kohat Cement Company announces five million share buyback

By Muhammad Raafay Khan

ISLAMABAD: Kohat Cement Company Limited (KOHC) will buy back five million of its ordinary shares, the company announced to the Pakistan Stock Exchange (PSX) on Tuesday.

The notification read, “The Board of Directors of Kohat Cement Company Limited in its meeting held on January 24, 2023, has approved and recommended to the members of the company for the purchase/buy-back of upto 5,000,000 (five million) of its own issued ordinary shares, having face value of Rs 10 each, out of the distributable profits/reserves of the company.”

The purpose of the buy-back is the cancellation of shares. The shares to be bought back comprise 2.49% of the total outstanding shares of the company. The purchase period is expected to start from March 1, 2023 to August 19, 2023. The purchase will be funded through the company’s distributable profits/reserves.

According to the company notice, the purchase/buy-back of the company’s issued ordinary shares will improve the break-up value as well as the earnings per share (EPS) of the company. It will also provide an opportunity of exit to those members who wish to liquidate their investments.

It should be noted that under the buy-back rules, such buy-backs require the approval of the company’s shareholders through a special resolution. For this reason, the Extra-ordinary General Meeting (EOGM) of the company will be held on February 21, 2023 to seek members’ approval for the proposed buy-back.

In 2022, many major companies on the PSX announced share buybacks. The share prices of many profitable and established companies took a huge hit which made their valuations attractive. But due to a lack of institutional and foreign investors in the market, the sponsors of these companies decided to take advantage of the decline in share prices and buy back their own companies’ shares. It started with NETSOL in May (two million), followed by Maple Leaf Cement (25 million), then Lucky Cement (10 million), JDW Sugar Mills (two million), then BAFL (200 million), and finally ENGRO (70 million).

We wrote a featured piece for the Profit magazine at the end of last year titled ‘2022: the year of share buybacks’. The article predicted that “it might even be the case that the buybacks have only just started, and next year in 2023 we may see even more buybacks than the ones we saw in 2022. Time will tell.” It seems the KOHC buy-back is the continuation of the buy-backs we saw last year.

Corporate History

KOHC was incorporated in 1980 and is one of the leading cement manufacturing companies of Pakistan. It has an annual capacity of 4.78 Million tonnes of Grey Clinker and 135 thousand tonnes of White Clinker. The company’s registered office and the factory are located in Kohat, whereas the Head Office is located in Lahore. ANS Capital (Private) Limited is the holding company of the Company.

In 1994, KOHC was listed on the stock exchanges of Pakistan and an initial public offer was made in which 2,193,334 ordinary shares were issued to the general public at a price of Rs 52 per share. The new management headed by Aizaz Sheikh (CEO) undertook an extensive BMR programme in 1995 funded by proceeds of a public offering and a commercial debt.

The company has been in expansion mode since then and has timely converted to coal firing, established a white cement plant of 450 TPD production capacity, set up a new grey cement line of 6,700 TPD capacity and also established a standby power plant of 22.4 MW capacity. In 2002, KOHC also entered into foreign export markets in addition to the domestic markets.

The company has total ordinary shares of 200,861,297. Its market capitalisation is Rs 26.87 billion. Its free float shares, which are the actual number of shares traded on the PSX, are 60,258,389 or 30% of the total paid-up capital of the company.

For the financial year ended June 2022, KOHC posted a 37% yearly increase in net sales to Rs 32,877 million. Its gross profit increased by 64% to Rs 9,812 million. Its operating profit registered an impressive 75% increase to reach Rs 9,463 million. And finally, its net profit after tax increased by 44% to Rs 5,024 million. This net profit growth would have been almost 70% if not for the 10% super tax imposed on corporations’ income by the new government last year.

On Tuesday, the day of the buy-back notice, KOHC’s share price hit the upper cap of 7.5% and closed at Rs 133.78 per share.

Previous article
SNGPL reduces gas losses by 23,348 MMCF in three years
Next article
Struggling Fauji Foods given lifeline by SECP 
Muhammad Raafay Khan
Muhammad Raafay Khan
Sector Analyst for Profit Magazine. Focus on corporates on the PSX. Can be reached at [email protected]

148 COMMENTS

  1. A MUST READ FOR ANYONE WHO HAS EVER FALLEN FOR CRYPTO SCAM BEFORE

    Another Successful Bitcoin Recovery, My husband and I are another successful client of RecoveryMasters among many. I read countless positive reviews about how they have been using their Recovery expertise to help people achieve their happiness back by recovering their scammed or lost Bitcoin and assets from fraudulent and posers of Cryptocurrencies trading companies. After reading many of the wonderful services they render, I had to contact them because my husband was seriously defrauded by some scammers online, it all ended in goodwill as we were able to recover what we thought we had lost to scammers. Contact them on email ([email protected]) or whatsapp +1(551) 202-23-35

  4. CYBER GENIE INTERCONTINENTAL is a great company and we need more genuine hackers and software programmers like them in this world, they were able to unlock an old crypto wallet account that I thought I couldn’t ever access. They were very helpful and extremely patient with me, even after they were able to access it, they never took a dime from thousands of euros Bitcoin in it. I highly recommend them to everyone.
    [ Cybergenie AT cyberservices DOT com ]

  22. Thanks to Mrs Jane who helped me recover all my lost funds in forex and crypto trading including my profits, i was a big fool giving my hard earned money to greedy and scammed brokers, but am so happy i met Jane silva a honest woman who helped me recover all my lost funds, and she also gave me the right signal and platform to trade with, now am able to make $5000 weekly, and am very happy, that is why i cant stop testifying about her, if you are out there still experiencing failure trading in binary option, crypto and forex trading or you want to recover your lost funds trading in binary/ forex trade i will advice you to reach out to
    her via email on janesilva0727 gmail com

  39. I never thought I could get scammed of my Bitcoin , I never new these investments were fake . I never knew I was getting lured into loosing my money , I was depressed and in anger but all thanks to Adam Wilson for the help and professional service offered to me in my time of need . Thanks to Kate for sending me this contact mail. Adamwilson . Trading {aT} Consultant . Com /WhatsApp +1870-345-7937
    Who helped me recover my lost money from Bitcoin investment . I couldn’t believe it..

  74. I high appreciate this post. It’s hard to find the good from the bad sometimes, but I think you’ve nailed it! would you mind updating your blog with more information?

  85. I can see that you are an expert at your field! I am launching a website soon, and your information will be very useful for me.. Thanks for all your help and wishing you all the success in your business.

  86. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you.

  87. This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Lookin g to reading your next post.

  97. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you.

  102. Wonderful article, thanks for putting this together! This is obviously one great post. Thanks for the valuable information and insights you have so provided here.

  114. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! keep up the good work

  119. Great Information sharing .. I am very happy to read this article .. thanks for giving us go through info.Fantastic nice. I appreciate this post.

  123. What a fantabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much.

  124. Thank you again for all the knowledge you distribute,Good post. I was very interested in the article, it’s quite inspiring I should admit. I like visiting you site since I always come across interesting articles like this one.Great Job, I greatly appreciate that.Do Keep sharing! Regards,

  125. Most of the time I don’t make comments on websites, but I’d like to say that this article really forced me to do so. Really nice p ost!

  127. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you.

  132. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! keep up the good work

  134. Biological science includes the study of cellular molecular processes classification and behavior of organisms, species evolution, and

  135. Biological science includes the study of cellular molecular processes classification and behavior of organisms, species evolution, and

  138. This would be the right weblog for anybody who wishes to discover this topic. You actually put a brand new spin using a topic that’s been written about for decades. Wonderful stuff, just fantastic.

  139. On Tuesday, Kohat Cement Company Limited (KOHC) informed the Pakistan Stock Exchange (PSX) that it will repurchase five million of its common shares.The following was stated in the notification: “The Board of Directors of Kohat Cement Company Limited has approved and recommended to the members of the company for the purchase/buy-back of up to 5,000,000 (five million) of its own issued ordinary shares, having a face value of Rs 10 each, out of the distributable profits/reserves of the company in its meeting held on January 24, 2023.

  143. Thanks for writing such a good article, I stumbled onto your blog and read a few post. I like your style of writing…

  144. Although it’s a really sensitive topic, you handled it superbly. It demonstrates your depth of understanding and thorough research on the subject. Keep sharing, please.

  147. Thanks for such a pleasant post. This post is loaded with lots of useful information. Keep it up. If you are looking for the best information and suggestions related to wholesale electronic components then visit us.

  148. This is where having a bankruptcy and divorce attorney near me can help. In a similar vein, student debts are difficult to pay down due to their size. It should be noted that personal debts only qualify for bankruptcy, not joint debts. With the aid of experienced bankruptcy attorneys in the area, you can prevent liens from being filed.

Comments are closed.

RELATED ARTICLES

Must Read

Profit by Pakistan Today
Publishing Editor: Babar Nizami -- Editor Multimedia: Umar Aziz Khan -- Senior Editor: Abdullah Niazi -- Editorial Consultant: Ahtasam Ahmad -- Business Reporters: Taimoor Hassan | Shahab Omer l Zain Naeem | Nisma Riaz | Mariam Umar | Hamza Aurangzeb | Shahnawaz Ali | Ghulam Abbass | Ahmad Ahmadani | Aziz Buneri -- Sub-Editor: Saddam Hussain -- Video Producer: Talha Farooqi -- Director Marketing : Mudassir Alam | Regional Heads of Marketing: Agha Anwer (Khi) | Kamal Rizvi (Lhe) | Malik Israr (Isb ) -- Manager Subscriptions: Irfan Farooq -- Pakistan’s #1 business magazine - your go-to source for business, economic and financial news.
Contact us: [email protected]
Copyright © 2024. Pakistan Today. All Rights Reserved.